Gold Futures
Gold futures in the April contract is currently trading at 1,497 an ounce after settling last Friday in New York at 1,516. However, that doesn't tell you the whole story as prices had a $125 range on Monday opening sharply higher and then plunging to a 7 month low as prices traded down to the 1,450 level in a highly volatile trading week.
The U.S. stock market was sharply lower once again with wild price swings daily as the Coronavirus has thrown a wrench into the closet towards many different commodity sectors. I am currently not involved in this market as the risk/reward is not in your favor to take a bullish or bearish position as the volatility is too high.
Gold prices are trading below their 20 and 100-day moving average as the trend is lower as prices have dropped over $200 over the last 2 weeks as nobody seems to want to own anything at the current time. Margin calls are to blame for the weakness that we have experienced over the last several days as silver prices have also hit decade-low putting pressure on gold as well. However, I do think the downside is limited. Still, I will wait for the chart structure to improve, coupled with lower volatility.
TREND: LOWER
CHART STRUCTURE: POOR
VOLATILITY: HIGH
Silver Futures
Silver futures ended the week on a positive note up $0.45 at 12.58 an ounce after settling last Friday in New York at 14.50 down over a $1.80 for the trading week hitting an 11-year low as sheer panic has entered the commodity and stock sectors due to the Coronavirus.
Silver prices topped out on February 24th at $19 as we've plunged over the last month as nobody wants to own anything at the current time until some type of stabilization with the U.S. stock market occurs as that might take some time. I am not involved as the volatility is too high; therefore, the risk/reward is not in your favor as we will have to see what the government bailouts look like as we will get more clarity on that situation in the coming days ahead. Continue reading "Coronavirus Brings Volatility To Futures"